The Alexander Lyman Holley Memorial is located west of the central fountain in Washington Square Park.

In the early 1850s, British engineer Sir Henry Bessemer invented a process to manufacture steel cheaply and in large quantities, but was unable to demonstrate the potential of the new manufacturing process. Alexander Lyman Holley traveled to England in 1863 and purchased the U.S. rights to the Bessemer process for Winslow & Griswold, after which he designed and constructed the Bessemer Steel Works on the banks of the Hudson River in Troy, NY, which began producing Bessemer steel on February 16, 1865.

Holley's research in the steel manufacturing process identified weaknesses and developed innovations for the massive types of machinery that were required. He received 15 patents for his inventions, 10 of which were for improvements to the Bessemer process. The steel plant Holley designed in Troy was the first in America capable of producing high-grade Bessemer steel and its demonstration of efficiency led investors to fund the design and construction of other steel plants across the country, many of which Holley was involved with planning or designing, including ones in Harrisburg, PA, Chicago, IL, Joliet, IL, and Pittsburgh, PA. In addition to his engineering work, Holley was a technical journalist and wrote over 300 newspaper articles for The New York Times between 1858 and 1863.

The Alexander Lyman Holley Memorial was commissioned and funded by three engineering societies: the American Society of Mechanical Engineers (ASME), the Institute of Mining, Metallurgical and Petroleum Engineers (AIME), and ASCE. Holley served as the president of AIME in 1875, the vice president of ASCE in 1876, and chaired the first meeting of ASME's founding members in 1880. The memorial consists of a bronze bust created by sculptor John Quincy Adams Ward mounted on a Beaux-Arts pedestal made of Indiana limestone and designed by architect Thomas Hastings. The inscription carved on the pedestal reads:

In 1999, the Holley Memorial was restored through contributions from ASME, AIME, ASCE, the Steel Service Center Institute, and the Save Outdoor Sculpture! Program. A maintenance endowment was also established. ASCE Executive Director James E. Davis attended the memorial's rededication ceremony on October 25, 1999.